MGBBT0UBN: Premier Inn Hotel's Structure and Business Environment

This case study provides an in-depth analysis of Premier Inn Hotel, a prominent business organization in the hospitality industry. It examines the company's organizational structure, highlighting the benefits and limitations of its hierarchical model, including specialization, clear advancement paths, and potential declines in internal innovation. Furthermore, the study employs SWOT and PESTLE analyses to evaluate Premier Inn's business environment, considering factors such as locations, limited global presence, market opportunities, competition, political influences, economic conditions, social trends, technological advancements, legal considerations, and environmental aspects. The analysis reveals both favorable and unfavorable factors impacting the hotel's operations and strategic positioning within the competitive hospitality market. Desklib provides students access to this complete assignment solution and a wealth of other study resources, including past papers and solved assignments.

MGBBT0UBN
Understanding Business
Organisation

Contents
Contents...........................................................................................................................................2
1. INTRODUCTION.......................................................................................................................1
2. ORGANISATIONAL STRUCTURE OF THE COMPANY......................................................1
3. BUSINESS ENVIRONMENT ANALYSIS OF THE ORGANISATION.................................2
3.1 SWOT Analysis.....................................................................................................................2
3.1.1 Strengths:............................................................................................................................2
3.1.2 Weaknesses.........................................................................................................................3
3.1.3 Opportunities......................................................................................................................3
3.1.4 Threats................................................................................................................................3
3.2 PESTLE Analysis..................................................................................................................3
3.2.1 Political...............................................................................................................................3
3.2.2 Economical.........................................................................................................................4
3.2.3 Social..................................................................................................................................4
3.3.4 Technological.....................................................................................................................4
3.2.5 Legal...................................................................................................................................4
3.2.6 Environment.......................................................................................................................5
6. CONCLUSION............................................................................................................................5
REFERENCES................................................................................................................................6

1. INTRODUCTION
The term business organisation refers to any entity which is formed to carry out practices on
commercial enterprise. Present case study aims to gain understanding about a business
organisation together with its environment. Premier Inn Hotel is a business organisation with
approximate 78000 rooms addition to 800 hotels. It was established as Travel Inn in the year
1987 by Whitbread for competing with Travelodge. It operates for providing quality and
affordable hotel services for guests so to assist them to work well and live along with positively
impact on globe around it (Premier Inn Hotel, 2022). It also works for providing meaningful
work, set of skills and opportunities related to career development for the team. Major of hotels
of the business organisation are in UK, although, it begun expansion in global market as well. It
makes appeals to family market segment through holding competition addition to use social
media platforms for promoting destinations addition to new hotels. The enterprise also uses all
kinds of channels for better effects and strong presence of the brand throughout.
Present study covers organisational structure of the establishment, business environment
analysis by using frameworks including SWOT Analysis and PESTLE Analysis.
2. ORGANISATIONAL STRUCTURE OF THE COMPANY
Organisational structure states the ways wherein task allocation, supervision together with
coordination are directed for goal achievement (Pinto, 2018). In association to Premier Inn Hotel,
hierarchical or tall organisational structure is followed with pre-determined responsibilities, roles
and functional units. In this kind of organisational structure, employees have clear understanding
about defined responsibilities along with knows roles at workplace. Mentioned below are benefit
of tall structure to Premier Inn Hotel:
 Allows specialisation: With tall structure, organisational managers divide responsibilities
to the people logically. In context to Premier Inn Hotel, different managers in tall
structure allocate duties to employees in logical manner by permitting specialisation that
creates extra layer of efficiencies.
 Clear advancement paths: In a company, all people have desires for advancing in careers
(Kuznetsov and Et. Al., 2019). By following tall structure, managers of Premier Inn Hotel
offer very clear and easy advancement paths through either replacing departing or
advancing superiors.
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 Identifies where duplication exists: Tall organisational structure benefits by making it
possible to determine groups or teams which share resources. In Premier Inn Hotel, tall
structure helps in finding places wherein job responsibilities may overlap which results in
creating wider efficiencies.
Despite of numerous benefits, there are certain limitations of tall structure to Premier Inn
Hotel which are as follows:
 Declines internal innovation: There are clear reporting structure in tall organisational
structure that results in keeping information moving (Oriade and Et. Al., 2021). Within
Premier Inn Hotel, tall structure creates rigidity that limit innovation. For example, when
a personnel approaches direct manager with any view or idea, that many a times is
rejected which discourages the person to share it further.
 Centralises structure of power: In Premier Inn Hotel, tall structure causes superiors to
begin being involved in decision making about daily operations which foster lack of
delegation that reduces overall productivity which is available.
3. BUSINESS ENVIRONMENT ANALYSIS OF THE ORGANISATION
Business environment means set on conditions wherein operations of company are carried
out (Machado and Nunes, 2020). It deals in products and services, aims to earn profit, require
investment, involve risk addition to uncertainty of income. Premier Inn Hotel is a business
organisation that continuously perform operations in hospitality industry. The analysis of
business environment of Premier Inn Hotel is underneath through various frameworks:
3.1 SWOT Analysis
SWOT Analysis is said to a framework that organisational managers use for evaluation of
competitive position and developing strategic positioning (Reißmann, Thrän and Bezama, 2018).
For Premier Inn Hotel, SWOT Analysis is underneath:
3.1.1 Strengths: Locations: Most of presence of Premier Inn Hotel are located nearby to airports,
universities and great tourist attractions which grab attention of different customer
segments.
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 Rewards and recognition: Premier Inn Hotel has been recognised with ample number of
awards, such as Silver Travel Award, Best UK hotel group, Best Budget Hotel Brand and
so on (Awards of Premier Inn Hotel, 2022).
3.1.2 Weaknesses
 Limited global presence: In comparison to other hospitality giants in market, Premier Inn
Hotel works in restricted number of nations.
 Big issues: The company has faced huge issues related to hygiene and refund which
makes customers unhappy about its services and contributes in negative image of brand.
3.1.3 Opportunities
 New markets: It is an opportunity for Premier Inn Hotel to expand or diversify its
operations in new markets. Exploring more regions and countries is worth effort.
 More strategic tie-ups: The hotel can devise more number of strategic tie-ups so to
analyse and meet customer demands.
3.1.4 Threats Competition: In hotel industry, giant players, including EasyHotel, Marriott and many
more creates intense rivalry for Premier Inn Hotel. Brexit and Covid-19: There are various uncertain events, such as Brexit and Covid-19
which has put huge threat on financial position of the company.
3.2 PESTLE Analysis
PESTLE Analysis is an environment scanning framework through which business managers
gain macro picture of factors that influence or impact the company (BURKE, ROBINSON and
Choi, 2020). All factors of PESTLE Analysis that impacts Premier Inn Hotel are as follows:
3.2.1 Political
Within UK, successful collaboration of government with hospitality industry has bring in
new opportunities. For Premier Inn Hotel, favourable aspect of this factor is extensive aid from
government which assist managers to initiate changes which better carry out daily operation.
Unfavourable aspect is the impact of Brexit which leads to losing high number of workforces
due to modifications in law and facing heavy losses in sales.
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3.2.2 Economical
In UK, biggest investment is made in hospitality industry to assists firms to get on track
after pandemic hit the world. It is favourable for Premier Inn Hotel as sales are improving due to
rise in people's spending level. Post COVID, the hotel has been successful in generating more
profits as result of more people inclined towards travelling. However, at time of global lock
down, Premier Inn Hotel faces huge losses. This factor is unfavourable as it made hotel's current
strategies outdated so the management have to put in extra resources and time to develop new
plans so to effectively attract more guests in hotel.
3.2.3 Social
In UK, transformations in social preferences of people after pandemic has fully changed
their expectations from hospitality industry. Growing cost of living has resulted in people
expecting services at low costs but with high standards leads to unfavourable impact on Premier
Inn Hotel. But the coverage of Premier Inn Hotel is very huge in UK encouraging customers to
choose it over their competitors. Thus it is favourable for hotel as the management has been
successful in making experiences of customers excellent by transforming hotel strategies
according to social behaviours.
3.3.4 Technological
In UK, increasing in availability of mobile app, internet browsing and utilization of social
media are favourable for Premier Inn Hotel as they can use this technology for their marketing,
online booking during COVID in attract large number of customer without physical contact.
Also, increase in utilization of communication technology is unfavourable for Premier Inn as
their competitors spread fake news which decline reputation and customer base (Anggadwita and
Et. Al., 2020).
3.2.5 Legal
In UK, during COVID government gives tax rebate which is favourable for Premier Inn
Hotel as they can use extra income for new innovation and adopt changes. Whereas, a recent
change in Employment law and raise the rate of minimum wages are unfavourable for Premier
Inn. As they have to strictly follow the Health and Safety law as well as give more salary to their
employees which are not working in hotel with in employment act.
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3.2.6 Environment
In UK, there are availability of many natural resources, water and other aspect which are
favourable for Premier Inn Hotel in as they can use natural herbs in their Hotel in order to
provide healthy products to their customers which increase their brand value. Uncertain climate
condition is unfavourable for Premier Inn as they operated their business on seasonal basis, with
the closing airlines and rail networks they suffered from loss of their customer base (Davidson
and Forsythe, 2020).
6. CONCLUSION
From the presented information above, it is concluded that business organisation is
collection of individuals who work for achieving common objectives and goals through
coordinated along with structures practices. Organisational structure assists business concerns for
achieving aims along with objectives and encourage staff members for completing working
efficiently and promptly. Business environment analysis is conducted for identifying potential
influences of general and operating environments on company. With SWOT Analysis, an
organisation gets visibility of their existing status that let them understand together with measure
overall performance of enterprise. The framework helps in analysing what the business
organisation dies best at present and devise successful strategy for future. With PESTLE
Analysis, contextual information related to direction, positioning, risks, growth target and other
aspects are gathered. The framework helps to analyse as well as monitor factors of external
environment which impacts favourable and unfavourable on business organisation.
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REFERENCES
Books and Journals:
Anggadwita, G. and Et. Al., 2020. Towards a framework for tourism entrepreneurship
sustainability: Implications for future research. In The Future Opportunities and
Challenges of Business in Digital Era 4.0 (pp. 11-15). Routledge.
BURKE, K., ROBINSON, P. and Choi, M., 2020. Developing meta-strategies for hospitality
experiences. Managing Hospitality Experiences, p.141.
Davidson, D. V. and Forsythe, L. M., 2020. Business law: Principles and cases in the legal
environment. Wolters Kluwer Law & Business.
Kuznetsov, V. and Et. Al., 2019. Re-engineering the business process of sales in view of life
cycle stage and the company organisational structure. International Journal of Trade
and Global Markets. 12(3-4). pp.412-423.
Machado, M. J. C. V. and Nunes, C. R., 2020. Performance evaluation methods in the services
sector: empirical study in hotels. International Journal of Services and Operations
Management. 37(2). pp.220-240.
Oriade, A. and Et. Al., 2021. Sustainability awareness, management practices and organisational
culture in hotels: Evidence from developing countries. International Journal of
Hospitality Management. 92. p.102699.
Pinto, S., 2018. Worker co-operatives and other alternative forms of business organization.
In Handbook of the international political economy of the corporation. Edward Elgar
Publishing.
Reißmann, D., Thrän, D. and Bezama, A., 2018. Techno-economic and environmental suitability
criteria of hydrothermal processes for treating biogenic residues: A SWOT analysis
approach. Journal of Cleaner Production. 200. pp.293-304.
Online:
Awards of Premier Inn Hotel, 2022. [Online]. Available through:
<premierinn.com/gb/en/why/awards.html>
Premier Inn Hotel. 2022. [Online]. Available through: <
https://www.premierinn.com/gb/en/home.html>
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